Tonights Highlights | U.S. GDP Slashed in Half in Downward Revision; Equity Markets Recover as Oil Recedes
On the final trading day of the week, traders are engaged in intense maneuvering over whether to hold stock positions through the weekend.
Despite coordinated oil reserve releases by the IEA and temporary U.S. waivers on Russian oil imports, international oil prices remain elevated, indicating that the crux of the issue remains the reopening of Middle Eastern shipping lanes. Goldman Sachs warned earlier this week that if oil flows through the Strait of Hormuz remain suppressed throughout March, prices could challenge the 2008 historic high of nearly $150 per barrel.
Shortly before press time, oil losses widened following reports that France and Italy are attempting to initiate negotiations with Iran to ensure safe passage through the Strait, providing a modest lift to equity futures.
The latest U.S. economic data failed to trigger significant market volatility. January Core PCE rose 0.4% MoM and 3.1% YoY, both in line with expectations.
However, the second revision of Q4 2025 GDP was slashed to an annualized rate of just 0.7%, half of the previously reported figure. The Bureau of Economic Analysis explained that the 0.7 percentage point downward revision was due to adjustments in exports, consumer spending, government spending, and investment.
Additionally, the decrease in imports was smaller than previously estimated. Notably, when the initial Q4 GDP data was released in late February, market expectations stood at 2.8%, but the actual figure was only 1.4%.
Other News
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Adobe Faces Fresh "AI Sell-off"
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BuzzFeed Issues "Going Concern" Warning
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Apple Announces Commission Cut for China App Store
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